Treasury yields edge higher as volatile week wraps up

Treasury yields moved higher on Friday as investors continued to look for clues on the trajectory of monetary policy.

The yield on the benchmark 10-year Treasury was up more than 3 basis points at 4.98%. The yield on the 2-year Treasury note gained more than 3 basis points at 4.724%, while 30-year Treasury yields rose more than 1 basis point to trade at 5.31%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Investors are looking for clues on the trajectory of monetary policy, after the Federal Reserve’s FOMC meeting concluded on Wednesday with its first rate hike in three years. The Fed signaled that further tightening could be in the cards.

Fed Chairman Kevin Warsh said during a press conference on Wednesday that inflation has been “too high … for too long,” while the central bank’s dot plot data indicated that the majority of officials expected another rate increase.

Earlier this week, the yield on the 10-year Treasury hit 5.041%, its highest level since 2007. Yields pulled back across the curve in the aftermath of the rate hike announcement.

Friday will see the release of U.S. industrial production figures for August.

Later this morning, Federal Reserve Vice Chair for Supervision Michelle Bowman will take part in a panel discussion in London.